Investment Q&A

Q: "WIR's historical tax allocation has been 40% foreign non business income and 60% return of capital (ROC). ROC is included in the distribution and is not a separate payout. There certainly is no Canadian dividend tax credit. We would be fine with this in a cash account".
One more question on this CDN Cie !
I keep WIR.UN in my non registered account, since 1) the dividend is excellent and 2) The Cie is well positioned ,are those 2 arguments are enough to justify keeping WIR,UN in my non registered account and to pay the 15% US withholding tax + CDN tax ? any other argument ? since the dividend is 4.8% -15% US tax - CDN tax on 40% foreign non business income ? Thanks again !

Q: Re: Grant's Friday question about reducing the tax liability for his CCPC.

Instead of changing the investments, another option to consider would be to purchase corporate life insurance which can be the vehicle to pay that tax bill. And the life insurance premiums can be paid with corporate dollars, not personal after-tax dollars.
Just looking at it through a different lens here.

Q: Good morning,
I currently hold some US stocks (AMZN, CRWD, U, etc) in my non-registered Canadian dollar investment account because it allows me to use both currencies. I'm aware that you far prefer US stocks in a US dollar investment account for reasons that make good sense.
My question is: If I were to open a non-registered US dollar investment account and then transfer my American stocks into it, would they be subject to capital gains during the process?
Thank you to every one at 5i, and stay safe!

Q: A question was asked by Nick on Jan 19, 2021 to which you answered you prefer to delay RRSP withdrawals until an RRSP is converted into a RRIF, Why

Q: You answered Nick's question by saying it would be better to wait until the RRSP turned into a RRIF. So what's the tax rate for removing a stock from a RRIF? I am about to take some SHOP from my RRIF for annual withdrawal. The stock is up 394 per cent.

Q: I think its in my interest to increase amount my RIF annual withdrawal and transfer the unneeded portion into my available space in my TFSA for investment. Do you agree? Art

Q: Hi Peter/Ryan I hold 200 shares of LSPD in my RRSP and was thinking of transferring it in kind to my TFSA how bad would the tax implication be for me and Is it worth it. Thanks

Q: Does this ETF require the T1135 report form for income tax?

Q: Peter and His wonder Team
My RIF Account please. As you know every year there is a Mandatory Withdrawal from this account. My withdrawal date is April 30th. Can I move the money now into my cash account or do I have to wait until April 30th and it automatically happens? Also I have a stock in my RIF Account that went bankrupt...to zero. Can I declare that as a Tax Loss or is that not possible because it is in a RIF Account? Thank you for your help.

Q: I thinking of adding QQQ.US to my TFSA. I know there is a withholding tax for US dividends however the annual Dividend/Yield is only $1.74 or .055%. It appears the tax consequence would be minor in terms of dollars and cents. Is this reasonable . Thanks

Q: To further clarify your answer on swapping BEPC and BEP.UN, assuming there are no tax implications, what premium do you think is reasonable?

Q: I hold A&W and CSH in my non registered trading account at a small gain. From a tax point of view would it make sense to move to my RRSP so the distribution(dividends) are not taxed as interest? I have contribution room in my RRSP.

Thanks Greg

Q: The put I sold for REAL will expire below the strike price. Was wondering, when I'm assigned shares at $25 per unit, can I claim a tax loss if I transfer them to my TFSA in kind at the current price.

Q: Hi team,
What do you think of the Fonds de solidarité des travailleurs du Québec (F.T.Q.) as an investment ? What would you compare it to ? Is it really more advantageous than other investments in a RRSP, in term of income tax ?

Grateful for your views.

Jacques, IDS

Q: Hello 5i. Could you advise if there are US and/or international tax implications for Canadian residents from owning a well-diversified international ETF such as XEQT or VEQT, in a non-registered Canadian account? For example, roughly 47% of XEQT is made up from, in part, an ETF that's traded on the NYSE: ITOT.

Thanks as always for your help and advice.

Q: I have been trading US stocks in a taxable account for some time. I understand that upon selling a stock, we have to calculate the capital gain/loss, then convert that value back into CDN dollars. However, I recently learned that CRA also requires you to report capital gains on the foreign currency itself. When one sells a foreign stock, a deemed disposition of the foreign funds is considered to have occurred, even though they may not have been converted into CDN dollars. Therefore, we have to track the cost basis on the stock and on the foreign funds. So potentially one could have a capital gain on the stock AND a capital gain on the currency. Do I have this correct? If so, I don't think many investors know about this.

Q: I recently purchased NTR:US within my USA TFSA. With a 15% withholding tax applicable, I thought it still remained beneficial though with accruing the USD within the account.
Not sure this is the most beneficial strategy long term, and I am thinking of transferring the security to CAD TFSA instead. What you recommend?

Q: In response to Dennis question on Jan 9 I use my watchlist the Globe and Mail to get company info.
Of the 40 companies in my list there were 24 announcements between Jan 4 to 9th
Can I claim the cost of my Globe and Mail subscription as a tax write off?

Q: If I sell the A shares of a company at a loss can I immediataly buy the B shares and claim the loss on the sale of the A shares? (FN.PR.A and FN.PR.B)

Q: If the government decides to change the inclusion rate for capital gains, say to 75%, do you predict that this change will be retroactive to January 1st---- or instead be effective at the time of such an announcement ?